Effective Date: November 6, 2023, Approval Authority: Board of Directors of Emmanuel Christian School (EMCS)

This Policy governs the acceptance and financial administration of most types of donations from sources such as corporations, associations, foundations, and individuals, including Board Members, staff, and students, made in support of existing or new initiatives at the school.

This Policy encompasses all fundraising activities conducted by the EMCS or by any entity authorized by the EMCS.  

PURPOSE

This Policy is established to ensure that:

· informed decisions are made with respect to the acceptance of Donations (as defined below) and that all requirements pursuant to the Income Tax Act, RSC 1985, c 1 (5th Supp) and other legislated requirements are met;

· efficient administrative and accounting practices and procedures are followed in accordance with those established by EMCS;

· Gifts made to the EMCS and its affiliated organizations are reported accurately;

· policies and procedures are applied consistently when dealing with donors.

DEFINITIONS

For the purposes of this Policy, the following definitions shall apply:

“Donation” is a voluntary transfer of money or physical property carrying with it no rights, privileges, benefits, or advantages for the donor nor any obligation for the transfer of results. A Donation is for the benefit of EMCS. It may also be designated to a particular program or project of EMCS.

A “Donation Agreement” is a document signed by a donor offering or accompanying a Donation to EMCS. Included in the Donation Agreement, or accompanying it, should be an outline of the terms and conditions under which the Donation has been offered and accepted.

“Gifts-in-Kind” are donations of property and tangible assets, other than cash-based Donations. Examples include, but are not limited to, immoveable property (such as donations of land, buildings, etc.), moveable property (such as equipment, software, furniture, works of art, educational materials, operating supplies, cultural property, etc.), as well as marketable securities (stocks, bonds, term deposits, Guaranteed Investment Certificates, etc.).

POLICY

Donation Eligibility

1.     Donations eligible for acceptance by the EMCS include but are not restricted to:

a.     Cash donations (outright Gifts of cash, cheques, credit cards (only trough Canada Help), electronic fund transfers, payroll deductions);

b.     Gifts-in-Kind;

c. Deferred Donations (such as bequests, life insurance policies, retirement plan assets, charitable remainder trusts, etc.).

Donation Acceptance  

2.     EMCS may elect to accept or decline any Donation. All Donations will be transferred to the Office of EMCS for gift processing and issuance of a tax receipt. In exceptional or contentious circumstances, the final decision to accept or decline a Donation valued at up to $10,000 rests with the Administrations of EMCS, and the final decision to accept or decline a Donation valued at more than $10,000 rests with the Board of Director of EMCS. In such cases where a particular Donation may be contentious, the Director of Operations shall consult with the Principal and any other person whom they deem appropriate in the circumstances, and, in the case of a contentious Donation valued at more than $100,000 the President of the Board shall consult with any person who they deem to be appropriate in the circumstances.

3.     Ownership of all Donations directed to EMCS rests in the EMCS, whether said Donations are generally for the benefit of the EMCS or for a specific purpose.

4.     In cases where the Donation is in the amount of $1,000 or more, a formal Donation Agreement is required. In cases where the amount is less than $1,000, a Donation Agreement is not required.

5.     Throughout this process, EMCS may seek appropriate counsel to ensure that:

a.     the proposed Donation is consistent with institutional rules as well as federal and provincial laws, regulations and guidelines, including, for example, taxation, employment, human rights, equity, anti-bribery, anti-money laundering and antiterrorism legislation;

b.     the donor’s intent and direction is consistent with institutional objectives and priorities;

c.     the donor’s intent and direction is clearly understood and documented;

d.     the proposed Donation does not expose EMCS to potentially significant liability or reputational harm and must not jeopardize EMCS status as a registered charity;

e.     if precedent-setting or sensitive issues are present, they are adequately assessed by the appropriate institutional authorities;

f.      The proposed Donation has received the appropriate institutional review and approval.

Donation Limitation

6.     Donors may direct a Donation to a particular need of EMCS. A charitable receipt will be issued provided that the use of the funds rests with EMCS and is available for the benefit of the need and that all other requirements set forth in the applicable legislation, regulations and governmental guidelines are met.

7.     Charitable receipts cannot be provided when:

a.     the donor receives any direct personal benefit under the arrangement (other than Canada Revenue Agency (CRA) - recognized split-interest gifts);

b.     the donor stipulates the recipient, in the case of an award;

c.     proprietary rights or entitlement accrues to the donor through the use of the funds.  

The above examples are not an exhaustive list of circumstances where EMCS cannot issue tax receipts.

8. When conditions placed on a proposed Donation are judged to be administratively difficult or not in EMCS's best interests, the Director of Operations and Principal, in consultation with other EMCS officials, including the President, may request that the terms of the proposed Donation be revised or recommend that the Donation be declined.

Eligible Donations

9. Cheques, electronic fund transfers, credit card transactions (Only under $1000 and on the Canada Help website) or other cash transfer mediums accepted by the EMCS shall be forwarded to the EMCS office for recording and processing. Cash Donations may be in the form of cash to a limit of $1,000 from any one individual or corporate entity at one time.

10.  Gifts-in-Kind may be received and held by EMCS and used for purposes consistent with its objectives or may be disposed of at any time after the Donation, provided no such agreement to the contrary is made between the donor and EMCS. The donations must be of use to EMCS, or they should be available to be disposed of, and the proceeds should be directed in support of EMCS or agreed to between EMCS and the donor.

11.  All Gifts-in-Kind must be offered by the donor in writing in advance and conditionally accepted in writing in advance by the Director of Operations, Principal or President. Such Donations shall be accepted only after a review indicates that the property is needed by EMCS in support of EMCS goals.

12.  The Donation will be completed by the execution and delivery of a Donation Agreement acceptable to EMCS.

13.  In the case of Gifts-in-Kind, donors are to be advised that an appraisal could be required for the issuance of a charitable receipt and that any costs associated with the appraisal and the conveyance and delivery of the Donation are to be borne by the donor unless EMCS agrees exceptionally to defray these costs.

14.  In the case of Gifts-in-Kind, the amount of the receipt shall be based on the fair market value of the Gift on the date of the Donation. If the fair market value is expected to be $1,000 or less, a qualified staff member may perform the appraisal. If the fair market value is expected to be more than $1,000 but less than $10,000, the Director of Operations or Principal shall require that the fair market value be assessed by a professionally accredited appraiser unless they are of the opinion that there is a staff member who is qualified to effect the appraisal in question, in which event, the qualified staff member shall prepare the fair market appraisal. If the fair market value is expected to be more than $10,000 Director of Operations or the Principal shall require that the fair market value be assessed by a professionally accredited appraiser. Such appraisals prepared by professionally accredited appraisers are to be done at arm's length from the donor and EMCS.

15.  In some cases, a second appraisal may be deemed necessary by the EMCS Board to confirm the fair market value of a Donation.

16.  EMCS has adopted Donation Counting Guidelines, which contain additional guidance and direction. These guidelines may be updated by EMCS as deemed necessary.

Issuing Charitable Tax Receipts

17.  Every Donation must be made to or payable to Emmanuel Christian School.

18. The EMCS Financial Officer is the only person authorized to issue official charitable tax receipts. The signature on the tax receipt bears the name of the President.

19.  All charitable receipts must be issued in compliance with the Income Tax Act. A charitable donation must be a voluntary transfer, which is made without expectation of benefit to the donor or to anyone designated by the donor subject to split-interest donations under the terms of the Income Tax Act.

20.  Donations that are not deemed to qualify as Donations according to the Income Tax Act will be acknowledged through the appropriate acknowledgement letter. No charitable tax receipts will be issued.

21.  Only qualifying Donations of twenty dollars ($20) or more will automatically be issued a charitable tax receipt. Donations of less than twenty dollars ($20) will be issued a charitable tax receipt upon request.

22.  Charitable tax receipts acknowledging a Donation will be dated in the calendar year in which the Donation is received. Charitable tax receipts for a Donation received on or after January 1 but bearing a post-mark prior to the end of the preceding calendar year are dated December 31 of the preceding year.

23.  Charitable tax receipts will only be issued in the name of the individual(s) or entity making the Donation.

24.  EMCS reserves the right to decline to provide a charitable tax receipt in connection with any Donation.

The overall responsibility for the implementation and recommended amendments to this Policy shall rest with the Board of Directors on November 6, 2023.